Climate investments in Africa after COP27

The implementation climate summit COP27 has created a greater momentum towards increased and targeted finance for Africa with new partnerships and promises in tow. CNBC Africa's Ridhima Shukla spoke to Simon O'Connell, the CEO of SNV, to discuss how these developments are shaping the way forward. Coming out of COP27, SNV was a partner in both the first-ever food systems pavilion and the water pavilion, highlighting the importance of breaking down silos between sectors such as agriculture, agri-food, and water. O'Connell emphasized the need for a more systemic approach to address water scarcity, sanitation, hygiene, and equitable water resource management. While there were numerous commitments made at COP27 towards holistic and system-focused approaches, there remains a significant gap in the financing needed to address water-related challenges in Africa. O'Connell acknowledged the importance of moving away from siloed, project-driven approaches towards building deeper partnerships and innovative financing mechanisms. He stressed the need to focus on financing not only adaptation and mitigation efforts but also on supporting the most vulnerable countries experiencing water scarcity. One of the key challenges highlighted during the interview was the need to shift away from traditional climate finance models, such as loans, towards impact-driven finance. O'Connell cited SNV's partnership with the Dutch development finance institution FMO as an example of an innovative finance mechanism that aims to channel larger volumes of financing into critical areas like shrimp farming in Vietnam and horticultural production in Kenya. These initiatives not only have a climate-related impact but also support business development and social outcomes. The conversation also touched upon the importance of prioritizing support for the most vulnerable and fragile countries in Africa. O'Connell underscored the need to focus on gender equality, social inclusion, and youth empowerment in climate finance initiatives. He emphasized the urgency of directing resources to those most in need and the importance of engaging local communities in decision-making processes. Overall, the interview highlighted the increasing momentum towards collaboration between development finance institutions and implementing organizations to address climate challenges in Africa. O'Connell called for accelerating these efforts, building longer-term partnerships, and de-risking investments to ensure that financing reaches the most vulnerable populations. While progress has been made, there is still a long way to go in mobilizing the necessary resources and support for sustainable climate investments in the region.